This is because wages in Western Australia are the highest in Australia outside Canberra while Perth's house prices are lower than Sydney's and not enormously higher than Melbourne's.
Jobs can be harder to get in Perth than in Sydney although mining-related jobs are usually easily obtained. All of the typical big city jobs are available in Perth although corporate and financial sector jobs are less common than in Sydney or Melbourne.
Western Australia has huge deposits of metal ores - iron, nickel, cobalt and zinc for example - and coal. It also exports billions of dollars worth of petroleum and petroleum products each year.
Booming Asian economies, particularly China, have sourced many of their raw materials from Western Australia, resulting in high economic growth for the state and its capital, Perth.
Many large mining and mineral concerns have their headquarters in Perth. Mining itself is carried on outside Perth but the city is home to many support industries employing engineers and scientists.
There is a large oil refinery at Kwinana, 30 km south of Perth, with associated engineering and chemical manufacturing jobs.
Agriculture and tourism are also large players in the Perth region's economy.